USL-Diageo settle deal, to ink term sheet on Friday

After a prolonged period of uncertainty, Vijay Mallya promoted United Spirits Ltd and global drinks major, Diageo have reached an agreement on stake sale of USL and the deal will be announced on Friday, reports CNBC-TV18's Kritika Saxena.

USL and Diageo have agreed on financial and management contours and the companies will sign the term sheet on Friday. The deal which is likely to be valued close to a billion dollars will allow Diageo to take complete management control of USL where the company will also finalise key management roles.

USL stock jumped up 3 percent after reports that the deal was finalised. AFP

The deal will be completed in six months time and Vijay Mallya will remain the chairman of the company.

USL has been in talks to sell a stake to the world's biggest spirits group but the outcome has been in doubt. Last month, Reuters reported that Mallya was unsure whether or not he would agree terms with the London-listed firm.

USL stock jumped up 3 percent after reports that the deal was finalised.